The UK job market in 2023 has seen a series of notable developments, providing a complex but insightful overview for both job seekers and employers alike. This blog aims to analyse the key trends and statistics that have shaped the employment landscape in the May to July period of 2023.
During this period, the UK employment rate was estimated at 75.5%, representing a marginal decrease of 0.5 percentage points from the previous quarter. This decline was primarily attributed to a decrease in full-time self-employed workers.
The estimated paid employees for August 2023 remained largely stable, with a decrease of 1,000 individuals compared to the revised figure for July 2023, bringing the total to 30.1 million. It is important to note that this August estimate is provisional and may be subject to revision in the coming months.
The unemployment rate for the same period experienced a modest increase of 0.5 percentage points, reaching 4.3%. This rise was primarily driven by individuals who had been unemployed for up to 12 months.
The economic inactivity rate also saw a slight increase of 0.1 percentage points, standing at 21.1% from May to July 2023. This rise was predominantly driven by individuals in the 16 to 24 age group. Additionally, the number of individuals inactive due to long-term sickness reached a record high, while those inactive due to family or home responsibilities reached a record low.
From June to August 2023, the number of estimated job vacancies experienced a decline of 64,000 in the quarter, totaling 989,000. This marked the 14th consecutive period of declining vacancies.
Annual growth in regular pay (excluding bonuses) was robust, standing at 7.8% from May to July 2023, consistent with the previous three-month period. This is the highest annual growth rate for regular pay since comparable records began in 2001. Annual growth in employees’ average total pay (including bonuses) was even higher at 8.5%. It is important to note that this total annual growth rate was influenced by one-off payments made in the NHS and Civil Service sectors in June and July 2023.
July 2023 saw 281,000 working days lost due to labour disputes, with most strikes occurring in the Education and Health and social work sectors.
The UK job market in 2023 has experienced a series of nuanced shifts and developments, ranging from changes in employment rates to shifts in pay and vacancies. Both job seekers and employers need to consider these trends when navigating the current job market. Staying informed and adaptable will be key to making the most out of opportunities in this dynamic landscape.
